The subject of Wills, Living Wills, Irrevocable Trusts, Revocable Trusts, Life time
Trusts, Testamentary Trusts, Powers of Attorney and Estates need not be as confusing as it
seems. They are merely tools and regardless of your station in life or the vastness of
your financial estate, several of these tools very probably apply to you.

When you make the appointment with your lawyer, he will elicit the information
necessary to determine which of the above apply to your situation. At the very least, he
may recommend a Simple Will, a Living Will and a Power of Attorney.

The Simple Will allows you to dispose of your property in the manner
in which you see fit. It allows you to provide for the payment of your bills, funeral
expenses and taxes. You can designate the person who you want to care for these matters
and carry out your wishes as set forth in your will. In planing for your will you may be
able to avoid certain taxes by the creation of joint accounts.

A Living Will is your expression of your wishes concerning your care
and treatment during your final days on this earth. We all know that we may face
incapacity and the inability to care for ourselves due to the onset of age or accident or
illness. Others, even those we love and rely on, may not share our view about life and
death; or their judgment may be blinded by compassion and love. A living will states what
you want, and relieves others of the burden of making those hard decisions when and if the
time should come.

A Power of Attorney grants to another whom you trust, the ability to
perform the same acts which you can perform even during periods when you are incapacitated
or determined to be incompetent. A Durable Power of Attorney grants to
another whom you trust the ability to perform the same acts which you can perform. A
durable power of attorney can save great expense and time in the event of the incapacity
of an individual. It avoids the necessity of going to court and having an individual
declared legally incompetent, inventorying his estate, having a guardian appointed and
filing the necessary accounting. This document may be the most powerful and the most
useful for anyone involved in estate planning.

A Trust is an instrument which allows a person to convey legal
ownership of assets for the benefit of himself or others. A Revocable Trust
is one that can be revoked, i.e. , the assets can be transferred back to the original Settlor
(grantor) at the original settlor's wish. An Irrevocable Trust is one in
which the assets can not be returned to the settlor just because he wants them returned.
Both may be effective tools in providing for spouses, minor children or incapacitated
persons. They may also have important tax consequence to the settlor's estate upon his
death. A trust which is created by a will is known as a Testamentary Trust.
A trust which is created and takes effect during a persons life time is a Living
Trust. Both may be either revocable or irrevocable, and your attorney can guide
you as to which best meets your needs.

When a person dies, the sum of his assets and his liabilities comprise his Estate.
If he leaves a will, he dies Testate, and the terms of his will determine
how his assets will be distributed; if he has no will, he dies Intestate,
and the state laws of intestate distribution determine how his assets will be divided.
Sometimes it is necessary to open an estate; in the case of a testacy, you enter the will
for probate by filing it with the Register of Wills office. In the case of intestacy, you
file for letters of administration with the Register of Wills. A personal representative
(An Executor in the case of a will and an Administrator
where there is no will) is then appointed to file the necessary tax returns, pay the
funeral expense, pay all final bills and then make distribution to the beneficiaries or
heirs. In most cases all expenses charged against the administration of the estate are
charged against and paid for by the estate. Some assets may pass outside of the estate.
These are joint survivorship assets and have different tax consequences. Many times
lawyers recommend the use of Joint Survivorship Assets such as joint bank
accounts, joint names on stock certificates or joint real estate in order to eliminate
administrative costs and inheritance taxes. Often, the savings derived from good estate
planning greatly exceed the expense incurred by failing to plan ahead.

This information is presented as a service of Kahle &
Associates, Attorneys at Law